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ADC 390 

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ATTACHMENT to ADC 390 

Revise DS 527R MRA and Receipt Functions to Require the DOD Contract Number 

for Transactions Associated with Government Furnished Materiel (GFM) and 

For MRA Associated with Contractor Furnished Materiel (CFM) 

1. ORIGINATOR: 

 a. Originator: OSD/DPAP 

 b. Sponsored by: DLA Logistics Management Standards Office, Mary Jane Johnson, 

703-767-0677, DSN 427, email: Mary.Jane.Johnson@dla.mil and Ellen Hilert, 703-767-0676, 

DSN 427, email: Ellen.Hilert@dla.mil 

2. FUNCTIONAL AREA: 

 a. Primary/Secondary Functional Area: Supply/Contract Administration

 b. Primary/Secondary Functional Process: GFM/CFM Accountability 

3. REFERNCES: 

 a. DOD 4000.25-M, DLMS, Volume 2, Supply Standards and Procedures, available at: 

http://www.dla.mil/j-6/dlmso/elibrary/manuals/dlms/v2.asp 

b. Supply Process Review Committee (SPRC) Meeting 09-1, October 28-29, 2009. 

 c. Meeting, January 20, 2011, among DPAP, ODASD(SCI), and DLA Logistics Management 

Standards Office, subject: Government Furnished Property (GFP) 

d. DLMSO Memorandum, January 15, 2010, subject: Proposed Defense Logistics Management 

System (DLMS) Change (PDC) 383, ICP-Directed Shipments of Non-Requisitioned Government 

Furnished Material (GFM) (Supply) 

NOTE: CHANGES FROM PDC 374 ARE HIGHLIGHTED THROUGHOUT ADC 

4. BACKGROUND: 

a. Intent of the transaction: 

 (1) To require that contractors receiving Government Furnished Materiel (GFM) from a 

DoD supply source acknowledge receipt (or nonreceipt) of the GFM by the contract number that 

authorized the contractor to obtain the GFM (whether the GFM was pushed or pulled (requisitioned)). 

This contract number and call/order number, when applicable, shall be included on the MRA 

transaction. 

 (2) To require that contractors receiving Contractor Furnished Materiel (CFM) (also 

known as Contractor Acquired Property (CAP)) from a DoD supply source acknowledge receipt (or 

nonreceipt) of the CFM/CAP by the contract number that authorized the contractor to obtain the 

CFM/CAP. This contract number and call/order number, when applicable, shall be included on the 

MRA transaction. 
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 b. Scenario for which the transaction is used: Materiel is issued to a contractor as GFM, or as 

CFM, under a contract which authorized that contractor to receive material from Government supply 

sources. Material may be directed for shipment to the contractor from DoD or GSA supply sources 

from stock or for direct vendor delivery (DVD). Shipment may be pushed to the contractor based 

upon a contract schedule or issued in response to a requisition made by the contractor or Government 

representative (e.g. Management Control Activity (MCA)). The MRA may be provided by the 

contractor or by the Government representative (e.g. MCA). 

c. Procedures, transactions, data elements, processing details in use today: 

 (1) DLMS/ MILSTRIP (reference 3a). DoD 4000.25-M Volume 2, June 2005, 

Chapter 4, Requisitioning, prescribes procedures for the preparation and submission of 

requisitions with specific requisitioning requirements involving GFM, among others. All 

requisitions identifying a contractor as the ship-to location and a Government activity as the billto party are processed under GFM controls via the MCA. Additionally, all Army CFM 

requisitions are processed under CFM controls via the MCA. Additional controls are enforced 

for contractor ordering within DoD EMALL. In paragraph C4.2.1.8, Contract Information, it is 

required that all GFM requisitions for or by contractors must identify appropriate contract data. 

In paragraph C4.2.2.2.3, Required Information, it is required that all GFM requisitions must 

include GFM-related information as follows: 

C4.2.2.2.3.1. MCA monitoring the contract. 

C4.2.2.2.3.2. DoDAAC of the contractor requesting and/or receiving the material. 

C4.2.2.2.3.3. Indication when issue is without reimbursement. 

C4.2.2.2.3.4. Identification of the manufacturing directive number (MDN) or contract number. 

C4.2.2.2.3.5. Identification of the call or order number, when applicable. 

 (2) DLMS/MILSTRAP. Chapter 10, (DLMS March 2008 version, Change 5), Material 

Receipt Acknowledgement (MRA), requires in paragraph C10.1.3.1.2 that the recipients of DoD and 

GSA wholesale stocks and DRMS stocks--including contractors that receive GFM, as defined under 

DoD 4140.1-R; among others--use the 527R MRA. However, presently the 527R MRA transaction has 

no requirement for the contractor to cite the contract number that authorized the GFM. 

 (3) During SPRC Meeting 09-1 (reference 3b), Navy indicated that under the Navy 

Commercial Asset Visibility (CAV) System, contractors submit accountable receipts to the ICP for 

GFM rather than MRA. Under the MRA exclusions, MRA is not required when an accountable 

receipt is processed to the issuing ICP, so an MRA is not generated by CAV in this scenario. The 

SPRC and OSD DPAP agreed that based on this scenario, the GFM contract number should also 

be required in the accountable receipt transaction (527R with beginning segment Transaction Type 

Code D4-Receipt) for the contractor to cite the contract number that authorized the GFM. 

Accordingly the 527R is being revised for both the MRA and the Receipt transaction functions, 

and the procedures are also being revised accordingly. 

 (4) Current 527R includes a DLMS enhancement in the GF-Furnished Goods and 

Services segment allowing entry of the following data, which was proposed for deletion during 

staffing of PDC 374: 
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(a) Manufacturers Directive Number (MDN). Currently 527R Furnished Goods and 

Services segment allows for entry of the MDN or the contract number in nonprocurement source 

(MILSTRAP DI Code D6_ functionality) receipt transactions. This change requires entry of the 

contract number associated with GFM/CFM, so the option for entry of the MDN in lieu of the contract 

number was proposed for deletion by PDC 374. 

PDC 374 NOTE FOR DLA: At one time DLA had established procedures to carry the MDN in the 

MILSTRAP D6 transaction associated with the return of GFM in order to be able to associate the 

returned material to the initial contract authorizing the GFM. DLA Logistics Management 

Standards Office had requested by this note, that if this process is in use or is intended to be 

pursued as an enhancement, then DLA should advise in response to PDC 374 in order to facilitate 

the establishment of the proper notes and procedures authorizing either the contract number or 

MDN in return of GFM contractors. ADC 390 NOTE: DLA identified no requirement for MDN 

in response to this PDC note; hence MDN is being deleted from the GF segment in 527R as 

proposed. 

(b) Call or Order Number. Currently 527R Furnished Goods segment allows for 

entry of the Call or Order Number as a DLMS enhancement. No requirement/business case has been 

identified for inclusion of the call or order number in the Furnished Goods segment, so it was 

proposed for deletion by PDC 374. ADC 390 NOTE: During a meeting January 20, 2011, among 

DPAP, ODASD(SCI), and DLA Logistics Management Standards Office (reference 3c), DPAP 

noted the requirement to include the call/order number associated with the GFM contract, in 

the 527R transaction. Accordingly, call or order number in the Furnished Goods segment will 

be retained by this change rather than deleted as originally proposed. 

5. APPROVED CHANGE: The 527R transaction had no requirement for the contractor that 

uses GFM or CFM/CAP to cite the contract number (and call/order number when applicable) of 

the contract that authorized the use of the GFM (in the MRA or, for Navy CAV, the receipt) or 

purchase of CFM/CAP from Government supply sources (for MRA only). This limitation was 

based on the requirements established under the constraints of the 80 record position MILSTRAP 

DI Code DRA MRA transaction format and MILSTRAP DI Code D6_ Receipt transaction format. 

This change now requires inclusion under DLMS of the DoD contract number and associated 

call/order number, when applicable, authorizing GFM for MRA and Receipt transactions, and the 

DoD contract number, and associated call/order number, when applicable, authorizing CFM for 

MRA. 

 a. Revise DS 527R for MRA and Receipt as follows: 

Item 

# 

Location DS 527R MRA and Receipt Revision Reason 

1. DLMS 

Introductory 

Notes 

Add ADC 390 to DLMS Introductory note 7: 

- ADC 390, Revise DLMS Supplement (DS) 527R Materiel Receipt 

Acknowledgement (MRA) and Receipt Functions to Require the DOD Contract 

Number for Transactions Associated with Government Furnished Materiel 

(GFM) and for MRA Associated with Contractor Furnished Materiel (CFM) 

 

Identifies DLMS 

Changes included in 

the DLMS 

Supplement 
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Item 

# 

Location DS 527R MRA and Receipt Revision Reason 

2. 2/GF/060 Delete current Segment Level DLMS notes 1 and 2 and add new 

segment level note: 

DLMS Notes: 1., Use only in nonprocurement source receipts not-from-due. 

Do not use when reversing a receipt transaction

2. Use either the Manufacturing Directive Number (MDN) or contract number 

(but not both) associated with a furnished material transaction to reference the 

associated contract. Identify the controlling transaction number in 2/N9/030.

DLMS Note: Use only with nonprocurement source receipt 

(MILSTRAP DI Code D6_ functionality) and MRA transactions. Use 

only with those MRA and Receipt transactions associated with 

materiel issued to contractors as government furnished materiel 

(GFM), and with MRA transactions associated with Contractor 

Furnished Materiel (CFM) obtained from Government supply 

sources. Identify the controlling document number in 2/N9/030. 

Authorized DLMS enhancement. Refer to ADC 390.

Documents use of 

‘GF- Furnished Goods 

and Services’ segment 

with MRA 

transactions associated 

with issue of GFM or 

CFM to contractors. 

3. 2/GF01-

GF02/60 

2/GF01-02/60 is being changed to “not used”.

W3 Manufacturing Directive Number (MDN)

This change requires that 

contract number

authorizing GFM or 

CFM be used rather than 

allow use of MDN. 

4. 2/GF03/60 Change GF03 from “Used” to “Must Use” and add a DLMS note: 

Contract Number 

DLMS Note: Must use with MRA and Receipt transactions 

associated with material issued to contractors as GFM, and with 

MRA associated with CFM, to cite the number of the DoD contract 

which authorized the contractor to receive GFM or CFM as 

applicable. Establishes an audit trail between the MRA or Receipt 

and the contract. 

Documents use of 

GF03 contract number 

with MRA and receipt 

transactions. 

The GF segment is 

optional. When the GF 

segment is used, then 

the GF03 contact 

number must be used. 

5. 2/GF07/60 Mark GF07 as not used

Retain the call or order number: 

Release Number 

Federal Note: Use to identify the call or order number, or the call or 

order number including the respective call or order modification, as 

applicable, when using GF03. 

DPAP identified a 

requirement for use of 

call or order number in 

addition to the 

contract number which 

authorized GFM or 

CFM. 

 b. Changes to the 527R 2/GF/060 segment are shown at the enclosure. 

c. Proposed procedures. Revise DOD 4000.25-M, DLMS, Volume 2 as follows: 

 (1) Add a new paragraph as follows to DLMS Chapter 10, Materiel Receipt Acknowledgement, 

and renumber subsequent paragraphs (Note: PDC 383 (reference 3d) defines Bill of Material (BOM)): 

“C10.2.5.6. MRA FOR MATERIEL PROVIDED TO CONTRACTORS AS GOVERNMENT FURNISHED 

MATERIEL (GFM) and for MRA Associated with Contractor Furnished Materiel (CFM) (also known as 

Contractor Acquired Property (CAP)) Obtained from Government Supply Sources. This business process is 
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ADC 390 

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applicable when contractors are authorized to receive specific items and quantities of GFM or CFM from 

Government supply sources. Materiel may be issued to the contractor based upon a contract schedule/Bill of 

Material (BOM) or issued in response to a requisition made by the contractor or a responsible Government 

representative. Under DLMS, MRA of GFM/CFM requires identification of the DoD contract number and 

call/order number, when applicable, which authorized the provision of GFM/CFM to establish accountability 

to the authorizing DoD contract. This contract number is required in addition to the controlling document 

number for the MRA transaction” 

 (2) Add a new paragraph as follows to DLMS Chapter 13, Materiel Receipt: 

“C13.6. OPTIONAL INTRA-SERVICE USE OF RECEIPT FOR MATERIEL PROVIDED TO 

CONTRACTORS AS GOVERNMENT FURNISHED MATERIEL (GFM). Under the GFM business 

process contractors are authorized to receive specific items and quantities of GFM from Government supply 

sources. Materiel may be issued to the contractor based upon a contract schedule/Bill of Material (BOM) or 

issued in response to a requisition made by the contractor or a responsible Government representative. It is 

normally required that the contractor (or authorized Government representative) submit an MRA 

Transaction to the ICP under MRA procedures (refer to chapter 10, paragraph C10.2.5.6). However, on an 

intra-Service basis, if the Service requires the contractor to send a Receipt Transaction to their issuing ICP 

rather than an MRA, the contractor must cite the DoD contract number which authorized the provision of 

GFM. This establishes GFM accountability to the contract. The GFM contract number, and call/order 

number, when applicable, is required in addition to the controlling document number for the Receipt 

Transaction. Under the MRA exclusions, MRA is not required for shipments to contractors, 

commercial, or industrial activities which are receipt reported to the owning ICP.” 

 d. Alternatives: None.

6. REASON FOR CHANGE: Strengthens and supports third party electronic traceability of the 

contractors’ GFM MRA or Receipt transactions, or CFM MRA transactions, to the authorizing DoD 

contract number. Facilitates MCA reporting. Facilitates monitoring for potential contractor overuse 

of the supply system for CFM.

7. ADVANTAGES AND DISADVANTAGES: 

 a. Advantages (tangible/intangible): Reconciliation of GFM or CFM receipts against 

GFM/CFM authorizations by DoD contract number can be achieved electronically upon the 

execution of the 527R MRA or Receipt sent by the receiving contractor. 

 b. Disadvantages: None. 

8. DEFENSE AUTOMATIC ADDRESSING SYSTEM (DAAS) MAPPING: 

a. Impacts 527R mapping to allow for the use of the GF segment with MRA transactions. 

b. Impacts DAAS MRA Reports to capture the new data. 

9. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Not available at this time. 

Component responses to the PDC were to include estimated implementation schedules 

applicable to DOD systems integration of this change; however no implementation 

dates/schedule were provided. Components must identify implementation schedules applicable 

to DOD systems integration of this OSD/DPAP initiated ADC.
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10. IMPACT: 

a. Contractor accountability for GFM is greatly enhanced. 

b. Contracting Officer must ensure new requirement is implemented in contracts for 

contractors that receive GFM/CFM, or for MCA preparing MRA on behalf of contractors. 

Requirements must be accommodated IAW approved DoD procedures. 

c. Publications: DoD 4000.25-M, DLMS and DS 527R . 

 d. Automated Information Systems: 

 1) Impacts systems generating MRAs associated with GFM/CFM. This includes DoD 

EMALL, contractors preparing DLMS transactions, any Government applications that prepare the 

MRA on behalf of the contractor. 

 2) Impacts source of supply systems processing the MRA transactions. Pending full 

implementation, supply sources must ensure that transactions containing the required contract 

number do not cause transaction rejection. 

11. DLMS Data Element. 

a. No DLMS data elements are added by this change. Change authorizes new use for existing data. 

Authorizes use of existing GF segment contract number, and call/order number when applicable, 

associated with GFM/CFM with MRA. 

b. Change deletes MDN from 527R GF segment. 

12. PDC 374COMMENTS AND DISPOSITION: 

# COMPONENT PDC 374 COMMENT COMMENT DISPOSITION 

1 Army Concurs. Noted. 

2 Air Force Concur without comment. Noted. 

3 Marine 

Corps 

Concurs as written. Noted. 

4 DLA DLA concurs. There will be EBS and ICAN 

mapping impacts. 

Noted. 

5 Navy The Navy has reviewed PDC 374 and these are our 

comments and concerns: 

1. In their present configuration the Standard 

Procurement System and the Navy's Integrated 

Technical Item Management and Procurement 

System are not designed with processes or data 

structures to record receipt data submitted by 

vendor for GFM. These contract writing systems 

only provide contractual coverage by cause and 

statement of requirement to enable/authorize a 

vendor to receive GFM. 

1. Noted, however unless Navy can provide 

information to the contrary, the change 

would be to Navy ERP order fulfillment 

process relative to receipt and storage of the 

new MRA contract data, and to either the 

Contractor or MCA supporting systems 

depending on who generates the MRA, not 

to SPS per se. 

 If any change is required to the contract 

writing in SPS/Navy procurement, it may be 

in how they specify the requirement to the 

contractor via the contract clauses. 
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# COMPONENT PDC 374 COMMENT COMMENT DISPOSITION 

Navy continued... 

2. The provisions of PDC 374 would impose a new 

inventory/requisition processing requirement upon 

the Navy Enterprise Resource Planning (ERP) 

System. 

3. Also, Navy is concerned that the "DO" or Call 

number should only be removed from location 

2/GF07/60 if the entry of a PIIN or SPIIN in locations 

2/GF03/60 are mandatory. 

2. Noted. This is a new DLMS requirement 

so it would be a change to Navy ERP. 

3. The optional GF segment is only used 

with those Receipt and MRA transactions 

associated with materiel issued to contractors 

as GFM, and with MRA transactions 

associated with CFM obtained from 

Government supply sources. As documented 

in the DLMS notes, whenever the GF 

segment is used, GF03 (contract number) 

MUST be used. 

6 Contractor 

Support to 

DPAP 

WAWF and 

IUID Offices 

J.Craig 

I believe you will need at least two fields 

to capture Contract Number information. Have you 

considered using the CS Segment--which has three 

fields available--to capture the Contract 

information versus the GF? And to capture it within 

the "Header Loop" and dictate a single shipment/ 

receipt should ONLY cover one contract? 

The 527R (and most DLMS transactions) 

isn't designed to use the header in the way 

you suggest. 527R is designed with 

specific, limited data in the header so that 

multiple MRA or receipt transactions can 

be submitted in the detail level (if desired). 

It is unclear to this office which 2 data 

fields may be required. The contract#/ 

PIIN and the delivery order (call/order# in 

DLMS)? Both of those fields can be 

captured in the GF segment if needed; 

however PDC 374 was staffed 

recommending only carrying the 

contract#/PIIN. 

7 DPAP During the reference 3c meeting on 1/20/2011, 

DPAP identified a requirement for the call/order 

number in addition to the contract number, when 

applicable. 

The Call/order# is currently in the GF 

segment at GF07. DLMSO had 

recommended removing it from GF in 

527R by PDC 374, however DPAP 

confirmed a requirement to retain the 

call/order number in the GF segment in the 

context of PDC 374/ADC 390. 

Enclosure
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ADC 390 

Enclosure 

ENCLOSURE TO ADC 390 

527R GF SEGMENT (changes are identified by strike-through or red, bold, italicized text)

GF Furnished Goods and Services 

Pos: 060 Max: 1

Detail - Optional

Loop: RCD Elements: 4

User Option (Usage): Used 

Purpose: To specify information related to furnished material, equipment, property, information, and services 

DLMS Note: Use only with nonprocurement source receipt (MILSTRAP DI Code D6_ functionality) and MRA 

transactions. Use only with those MRA and Receipt transactions associated with materiel issued to 

contractors as government furnished materiel (GFM), and with MRA transactions associated with 

Contractor Furnished Materiel (CFM) obtained from Government supply sources. Identify the controlling 

document number in 2/N9/030. Authorized DLMS enhancement. Refer to ADC 390. 

1. Use only in nonprocurement source receipts not-from-due. Do not use when reversing a receipt transaction. 

2. Use either the Manufacturing Directive Number (MDN) or contract number (but not both) associated with a 

furnished material transaction to reference the associated contract. Identify the controlling transaction number in 

2/N9/030.

Element Summary: 

Ref Id Element Name Req Type Min/Max Usage

 GF01 128 Reference Identification Qualifier X ID 2/3 Not Used

 

Code Name

W3 Manufacturing Directive Number 

 

GF02 127 Reference Identification X AN 1/30 Not Used

 

 

GF03 367 Contract Number O AN 1/30 Must Used

 Description: Contract number 

DLMS Note: Must use with MRA and Receipt transactions associated with 

material issued to contractors as GFM, and with MRA associated with CFM, to 

cite the number of the DoD contract which authorized the contractor to receive 

GFM or CFM as applicable. Establishes an audit trail between the MRA or 

Receipt and the contract.

 

GF07 328 Release Number O AN 1/30 Not Used

 

Description: Number identifying a release against a Purchase Order previously placed by the parties 

involved in the transaction

Federal Note: Use to identify the call or order number, or the call or order number 

including the respective call or order modification, as applicable, when using GF03.